US Dec MEG contracts roll over amid steady markets

Source: ICIS News


HOUSTON (ICIS)--US December ethylene glycol industrial-grade (EGI), or monoethylene glycol (MEG), contract prices have been assessed at a rollover from November based on market feedback.

December MEG contracts were assessed on Friday at 41-47 cents/lb ($904-1,036/tonne) FOB (free on board).

Domestic supply is healthy, with all producers running well, according to sources.

Excess supply is heard to have been exported mostly to Asia, as is typical for this time of year, thereby balancing out slower demand.

There is some demand coming from the de-icing and antifreeze sectors due to winter weather, but overall activity has slowed down with this being the off-peak season and with the holiday season around the corner.

As a result, the markets were steady, and prices moved sideways this month.

Looking ahead, sources expect US MEG prices to either remain flat or move up slightly as the markets continue to face seasonally slow demand.

This is also reflected in the Asia Contract Price (ACP) nominations put out for January, which are up $0-20/tonne.

Meanwhile, Asia MEG prices and trade activity could face downward pressure from slowing downstream markets.

Major glycol producers in the US include Eastman Chemical, Huntsman, Indorama Ventures, LyondellBasell, Nan Ya Plastics, Shell Chemical and MEGlobal.